A Financial Analysis of Nuveen Investments Inc
As bad as the financial sector has been over the past few months, there are still many industries which have high capabilities of producing strong growth. The asset management industry is one of these groups. With a low P/E ratio of 21 and revenue growth apparent in almost all the upper cap companies, investing in any of these stocks will more than likely reap some benefits. The question, however, is which one will reap the most benefits? Will it be the large caps of Franklin Resources, Brookfield Asset Management, or Principal Financial Group Inc? It is quite possible. However, after looking through the strategic and fundamental elements of various companies in this industry, I see a mid-cap stock, Nuveen Investments (JNC), to have to highest potential of producing capital gains.
Before going to the important financial numbers, it is vital to understand what this company offers in terms of business. While many investors may claim that all asset management firms are similar, if that were the case, why do so many differ in terms of fundamentals? With respect to Nuveen, this company "is primarily engaged in asset management and related research, as well as the development, marketing and distribution of investment products and services for the affluent, high-net-worth and institutional market segments," according to Reuters. While the general plan may seem standard for most related companies, the real difference comes in how Nuveen allocates its investment groups. The company "offers six primary investment styles: value equities; fixed-income; growth equities; global equities; blue-chip growth equities, and core equity, fixed-income and hedged alternative investments " With a variety of different options to turn to, pending on market conditions, Nuveen has set itself up to produce excellent gains for its retail and institutional investors. The process will, in turn, translate to better revenue and earnings growth—contributing to strong investor sentiment and a higher share price. As the company also controls three main branches related to managed accounts, mutual funds, and closed-ended funds, there is even more robust alternative strategies for Nuveen to utilize to maximize growth in the future. And as of right now, this plan has seemed to work. Nuveen has seen over 925% share price growth since its IPO launch in 1992 with little correction in linear form.
Looking at the 925% number, much of this success can be attributed to the strong fundamentals Nuveen had and currently has. Its revenue, according to Capital IQ, of near 710 million over the last year contributed strongly to a year over year quarterly growth rate of about 24.5%. That number leads to a gross profit margin of close to 61% in the past year, and a 45% operating margin during the same time—handily beating the top three market capitalization companies in this industry, not to mention the industry itself. As suspected, these high numbers, regardless of a share price near the company's historical high, has led to a forward P/E ratio of 15.3. The multiple beats out the industry's average of 21.2 and also beats out Franklin Resource's 16.77 forward ratio and Brookfield Asset Management's 32.02 multiple as well. In terms of some unconventional multiples, its trailing price to sales of 5.33 beats out Franklin Resources' 6.01 and its trailing enterprise value to revenue of 5.91 beats out Brookfield Asset's 6.04. What is even more enticing is that Nuveen's enterprise value to EBITDA of 10.583 easily comes below Franklin Resource's 13.0, Brookfield's 15.2, and Principal Financial Group's 11.0. Such high cash flow may be the reason for a Brookfield Asset beating PEG ratio of 1.48 over the next five years. Or, the strong number may a contributing factor to capital expenditures the company spent on. With a growth rate of 4.44 over the next five years, according to Reuters, the number easily beats out the poor industry average of -11.35% growth during the same time. From these numbers, it is assessable to say that the data, used in context, does provide a great illustration that Nuveen is performing quite well.
Nevertheless, it is crucial to examine the management of this or any company, because with a poor staff, these numbers could falter very easily. Fortunately for Nuveen, it's CEO Timothy R. Schwertfeger and group of 828 employees have yielded a lot of great management figures over the past year. Its astonishingly high return on equity of 83% easily beats Franklin Resource's 20.5%, Brookfield Management's 18.8%, Principal Financial Group's 13.2%, and the industry's 23%. Nuveen's ROA of 16.3% also beats the industry's 6.13% figure, and the company's ROI of 21.5% beats out the industry's 11.67% as well. These numbers along with the capital expenditure figure aforementioned are the key drivers of why this company is performing so well. Some may question the higher enterprise value of 4.19 billion compared to the market cap of 3.77 billion, when typically companies this industry has their numbers reversed. With the recent vend of Institutional Capital Corporation some extra debt may have accumulated, but, rest assured, there is reason to continue to be optimistic with this company. With a current ratio above one, this company has the ability to take on even more debt because of the tactfulness of upper management. In fact, without this excellent management team to assess what the company requires, I may have suggested another corporation in this industry.
Therefore, the statistics are clear to any smart investor. Nuveen is a great investment. It still trades currently below its 50 and 200 day SMA, and taking a technical position, throughout the past year the company has seemed to increase to a new resistance level, stay there for a bit, drop down after a few days, but immediately continue to grow to a new 52 week and historical high. Indication shows that this company is now at this dip and should begin to sharply rise very shortly. And once this trend occurs, because of an unusually high short ratio of about 15.4, there will be an incredible opportunity for capital gains because of short covering. Thus, now is a great opportunity to begin considering buying shares of Nuveen, even though I believe this company will be beneficial to your portfolio whenever you commit your capital.
Before going to the important financial numbers, it is vital to understand what this company offers in terms of business. While many investors may claim that all asset management firms are similar, if that were the case, why do so many differ in terms of fundamentals? With respect to Nuveen, this company "is primarily engaged in asset management and related research, as well as the development, marketing and distribution of investment products and services for the affluent, high-net-worth and institutional market segments," according to Reuters. While the general plan may seem standard for most related companies, the real difference comes in how Nuveen allocates its investment groups. The company "offers six primary investment styles: value equities; fixed-income; growth equities; global equities; blue-chip growth equities, and core equity, fixed-income and hedged alternative investments " With a variety of different options to turn to, pending on market conditions, Nuveen has set itself up to produce excellent gains for its retail and institutional investors. The process will, in turn, translate to better revenue and earnings growth—contributing to strong investor sentiment and a higher share price. As the company also controls three main branches related to managed accounts, mutual funds, and closed-ended funds, there is even more robust alternative strategies for Nuveen to utilize to maximize growth in the future. And as of right now, this plan has seemed to work. Nuveen has seen over 925% share price growth since its IPO launch in 1992 with little correction in linear form.
Looking at the 925% number, much of this success can be attributed to the strong fundamentals Nuveen had and currently has. Its revenue, according to Capital IQ, of near 710 million over the last year contributed strongly to a year over year quarterly growth rate of about 24.5%. That number leads to a gross profit margin of close to 61% in the past year, and a 45% operating margin during the same time—handily beating the top three market capitalization companies in this industry, not to mention the industry itself. As suspected, these high numbers, regardless of a share price near the company's historical high, has led to a forward P/E ratio of 15.3. The multiple beats out the industry's average of 21.2 and also beats out Franklin Resource's 16.77 forward ratio and Brookfield Asset Management's 32.02 multiple as well. In terms of some unconventional multiples, its trailing price to sales of 5.33 beats out Franklin Resources' 6.01 and its trailing enterprise value to revenue of 5.91 beats out Brookfield Asset's 6.04. What is even more enticing is that Nuveen's enterprise value to EBITDA of 10.583 easily comes below Franklin Resource's 13.0, Brookfield's 15.2, and Principal Financial Group's 11.0. Such high cash flow may be the reason for a Brookfield Asset beating PEG ratio of 1.48 over the next five years. Or, the strong number may a contributing factor to capital expenditures the company spent on. With a growth rate of 4.44 over the next five years, according to Reuters, the number easily beats out the poor industry average of -11.35% growth during the same time. From these numbers, it is assessable to say that the data, used in context, does provide a great illustration that Nuveen is performing quite well.
Nevertheless, it is crucial to examine the management of this or any company, because with a poor staff, these numbers could falter very easily. Fortunately for Nuveen, it's CEO Timothy R. Schwertfeger and group of 828 employees have yielded a lot of great management figures over the past year. Its astonishingly high return on equity of 83% easily beats Franklin Resource's 20.5%, Brookfield Management's 18.8%, Principal Financial Group's 13.2%, and the industry's 23%. Nuveen's ROA of 16.3% also beats the industry's 6.13% figure, and the company's ROI of 21.5% beats out the industry's 11.67% as well. These numbers along with the capital expenditure figure aforementioned are the key drivers of why this company is performing so well. Some may question the higher enterprise value of 4.19 billion compared to the market cap of 3.77 billion, when typically companies this industry has their numbers reversed. With the recent vend of Institutional Capital Corporation some extra debt may have accumulated, but, rest assured, there is reason to continue to be optimistic with this company. With a current ratio above one, this company has the ability to take on even more debt because of the tactfulness of upper management. In fact, without this excellent management team to assess what the company requires, I may have suggested another corporation in this industry.
Therefore, the statistics are clear to any smart investor. Nuveen is a great investment. It still trades currently below its 50 and 200 day SMA, and taking a technical position, throughout the past year the company has seemed to increase to a new resistance level, stay there for a bit, drop down after a few days, but immediately continue to grow to a new 52 week and historical high. Indication shows that this company is now at this dip and should begin to sharply rise very shortly. And once this trend occurs, because of an unusually high short ratio of about 15.4, there will be an incredible opportunity for capital gains because of short covering. Thus, now is a great opportunity to begin considering buying shares of Nuveen, even though I believe this company will be beneficial to your portfolio whenever you commit your capital.
As bad as the financial sector has been over the past few months, there are still many industries which have high capabilities of producing strong growth. The asset management industry is one of these groups. With a low P/E ratio of 21 and revenue growth apparent in almost all the upper cap companies, investing in any of these stocks will more than likely reap some benefits. The question, however, is which one will reap the most benefits? Will it be the large caps of Franklin Resources, Brookfield Asset Management, or Principal Financial Group Inc? It is quite possible. However, after looking through the strategic and fundamental elements of various companies in this industry, I see a mid-cap stock, Nuveen Investments (JNC), to have to highest potential of producing capital gains.
Before going to the important financial numbers, it is vital to understand what this company offers in terms of business. While many investors may claim that all asset management firms are similar, if that were the case, why do so many differ in terms of fundamentals? With respect to Nuveen, this company "is primarily engaged in asset management and related research, as well as the development, marketing and distribution of investment products and services for the affluent, high-net-worth and institutional market segments," according to Reuters. While the general plan may seem standard for most related companies, the real difference comes in how Nuveen allocates its investment groups. The company "offers six primary investment styles: value equities; fixed-income; growth equities; global equities; blue-chip growth equities, and core equity, fixed-income and hedged alternative investments " With a variety of different options to turn to, pending on market conditions, Nuveen has set itself up to produce excellent gains for its retail and institutional investors. The process will, in turn, translate to better revenue and earnings growth—contributing to strong investor sentiment and a higher share price. As the company also controls three main branches related to managed accounts, mutual funds, and closed-ended funds, there is even more robust alternative strategies for Nuveen to utilize to maximize growth in the future. And as of right now, this plan has seemed to work. Nuveen has seen over 925% share price growth since its IPO launch in 1992 with little correction in linear form.
Looking at the 925% number, much of this success can be attributed to the strong fundamentals Nuveen had and currently has. Its revenue, according to Capital IQ, of near 710 million over the last year contributed strongly to a year over year quarterly growth rate of about 24.5%. That number leads to a gross profit margin of close to 61% in the past year, and a 45% operating margin during the same time—handily beating the top three market capitalization companies in this industry, not to mention the industry itself. As suspected, these high numbers, regardless of a share price near the company's historical high, has led to a forward P/E ratio of 15.3. The multiple beats out the industry's average of 21.2 and also beats out Franklin Resource's 16.77 forward ratio and Brookfield Asset Management's 32.02 multiple as well. In terms of some unconventional multiples, its trailing price to sales of 5.33 beats out Franklin Resources' 6.01 and its trailing enterprise value to revenue of 5.91 beats out Brookfield Asset's 6.04. What is even more enticing is that Nuveen's enterprise value to EBITDA of 10.583 easily comes below Franklin Resource's 13.0, Brookfield's 15.2, and Principal Financial Group's 11.0. Such high cash flow may be the reason for a Brookfield Asset beating PEG ratio of 1.48 over the next five years. Or, the strong number may a contributing factor to capital expenditures the company spent on. With a growth rate of 4.44 over the next five years, according to Reuters, the number easily beats out the poor industry average of -11.35% growth during the same time. From these numbers, it is assessable to say that the data, used in context, does provide a great illustration that Nuveen is performing quite well.
Nevertheless, it is crucial to examine the management of this or any company, because with a poor staff, these numbers could falter very easily. Fortunately for Nuveen, it's CEO Timothy R. Schwertfeger and group of 828 employees have yielded a lot of great management figures over the past year. Its astonishingly high return on equity of 83% easily beats Franklin Resource's 20.5%, Brookfield Management's 18.8%, Principal Financial Group's 13.2%, and the industry's 23%. Nuveen's ROA of 16.3% also beats the industry's 6.13% figure, and the company's ROI of 21.5% beats out the industry's 11.67% as well. These numbers along with the capital expenditure figure aforementioned are the key drivers of why this company is performing so well. Some may question the higher enterprise value of 4.19 billion compared to the market cap of 3.77 billion, when typically companies this industry has their numbers reversed. With the recent vend of Institutional Capital Corporation some extra debt may have accumulated, but, rest assured, there is reason to continue to be optimistic with this company. With a current ratio above one, this company has the ability to take on even more debt because of the tactfulness of upper management. In fact, without this excellent management team to assess what the company requires, I may have suggested another corporation in this industry.
Therefore, the statistics are clear to any smart investor. Nuveen is a great investment. It still trades currently below its 50 and 200 day SMA, and taking a technical position, throughout the past year the company has seemed to increase to a new resistance level, stay there for a bit, drop down after a few days, but immediately continue to grow to a new 52 week and historical high. Indication shows that this company is now at this dip and should begin to sharply rise very shortly. And once this trend occurs, because of an unusually high short ratio of about 15.4, there will be an incredible opportunity for capital gains because of short covering. Thus, now is a great opportunity to begin considering buying shares of Nuveen, even though I believe this company will be beneficial to your portfolio whenever you commit your capital.
Before going to the important financial numbers, it is vital to understand what this company offers in terms of business. While many investors may claim that all asset management firms are similar, if that were the case, why do so many differ in terms of fundamentals? With respect to Nuveen, this company "is primarily engaged in asset management and related research, as well as the development, marketing and distribution of investment products and services for the affluent, high-net-worth and institutional market segments," according to Reuters. While the general plan may seem standard for most related companies, the real difference comes in how Nuveen allocates its investment groups. The company "offers six primary investment styles: value equities; fixed-income; growth equities; global equities; blue-chip growth equities, and core equity, fixed-income and hedged alternative investments " With a variety of different options to turn to, pending on market conditions, Nuveen has set itself up to produce excellent gains for its retail and institutional investors. The process will, in turn, translate to better revenue and earnings growth—contributing to strong investor sentiment and a higher share price. As the company also controls three main branches related to managed accounts, mutual funds, and closed-ended funds, there is even more robust alternative strategies for Nuveen to utilize to maximize growth in the future. And as of right now, this plan has seemed to work. Nuveen has seen over 925% share price growth since its IPO launch in 1992 with little correction in linear form.
Looking at the 925% number, much of this success can be attributed to the strong fundamentals Nuveen had and currently has. Its revenue, according to Capital IQ, of near 710 million over the last year contributed strongly to a year over year quarterly growth rate of about 24.5%. That number leads to a gross profit margin of close to 61% in the past year, and a 45% operating margin during the same time—handily beating the top three market capitalization companies in this industry, not to mention the industry itself. As suspected, these high numbers, regardless of a share price near the company's historical high, has led to a forward P/E ratio of 15.3. The multiple beats out the industry's average of 21.2 and also beats out Franklin Resource's 16.77 forward ratio and Brookfield Asset Management's 32.02 multiple as well. In terms of some unconventional multiples, its trailing price to sales of 5.33 beats out Franklin Resources' 6.01 and its trailing enterprise value to revenue of 5.91 beats out Brookfield Asset's 6.04. What is even more enticing is that Nuveen's enterprise value to EBITDA of 10.583 easily comes below Franklin Resource's 13.0, Brookfield's 15.2, and Principal Financial Group's 11.0. Such high cash flow may be the reason for a Brookfield Asset beating PEG ratio of 1.48 over the next five years. Or, the strong number may a contributing factor to capital expenditures the company spent on. With a growth rate of 4.44 over the next five years, according to Reuters, the number easily beats out the poor industry average of -11.35% growth during the same time. From these numbers, it is assessable to say that the data, used in context, does provide a great illustration that Nuveen is performing quite well.
Nevertheless, it is crucial to examine the management of this or any company, because with a poor staff, these numbers could falter very easily. Fortunately for Nuveen, it's CEO Timothy R. Schwertfeger and group of 828 employees have yielded a lot of great management figures over the past year. Its astonishingly high return on equity of 83% easily beats Franklin Resource's 20.5%, Brookfield Management's 18.8%, Principal Financial Group's 13.2%, and the industry's 23%. Nuveen's ROA of 16.3% also beats the industry's 6.13% figure, and the company's ROI of 21.5% beats out the industry's 11.67% as well. These numbers along with the capital expenditure figure aforementioned are the key drivers of why this company is performing so well. Some may question the higher enterprise value of 4.19 billion compared to the market cap of 3.77 billion, when typically companies this industry has their numbers reversed. With the recent vend of Institutional Capital Corporation some extra debt may have accumulated, but, rest assured, there is reason to continue to be optimistic with this company. With a current ratio above one, this company has the ability to take on even more debt because of the tactfulness of upper management. In fact, without this excellent management team to assess what the company requires, I may have suggested another corporation in this industry.
Therefore, the statistics are clear to any smart investor. Nuveen is a great investment. It still trades currently below its 50 and 200 day SMA, and taking a technical position, throughout the past year the company has seemed to increase to a new resistance level, stay there for a bit, drop down after a few days, but immediately continue to grow to a new 52 week and historical high. Indication shows that this company is now at this dip and should begin to sharply rise very shortly. And once this trend occurs, because of an unusually high short ratio of about 15.4, there will be an incredible opportunity for capital gains because of short covering. Thus, now is a great opportunity to begin considering buying shares of Nuveen, even though I believe this company will be beneficial to your portfolio whenever you commit your capital.
posted by zzzzzzzzzzz at
2:53 AM
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